VMware Spin-Off Investor Call - April 14th 2021
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VMware Spin-Off Investor Call April 14th 2021
Disclaimer
NON-GAAP FINANCIAL MEASURES
This presentation includes information about non-GAAP revenue, non-GAAP operating income, and free cash flow, excluding VMware, before impact
from DFS related items (collectively the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance
with U.S. generally accepted accounting principles (“GAAP”). We have provided a reconciliation of the non-GAAP financial measures to the most directly
comparable GAAP measures in the slides in Appendix B captioned “Supplemental non-GAAP measures.”
SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS
Statements in this presentation that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can
identify these statements by such forward-looking words as “anticipate,” “believe,” “confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,”
“objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will” and “would,” or similar words or expressions that refer to future events or
outcomes. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because
of a number of risks, uncertainties and other factors, including those discussed in Dell Technologies' reports filed with the SEC, including Dell
Technologies’ annual report on Form 10-K for the fiscal year ended January 29, 2021, quarterly reports on Form 10-Q, and current reports on Form 8-K.
These filings are available for review through the SEC’s website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may
turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties, and
other factors. Accordingly, you should not place undue reliance on the forward-looking statements made in this presentation, which speak only as of its
date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of
circumstances or events that arise after the date they are made, new information, or otherwise.
2 © Copyright 2021 Dell Inc.Transaction Rationale
Achieves significant efficiencies in capital structure flexibility and capital allocation
Maintains benefits of existing relationship while increasing strategic flexibility for
✓ Dell Technologies & VMware, positioning both companies for future growth
Enables Dell shareholders to benefit from increased management focus on the attractive
✓
growth prospects of the core business while continuing to benefit from VMware ownership
✓ Simplifies capital structure for both companies
✓ Increases VMware eligibility for key indices and increases public float
✓ Unlocks discount in valuation of current capital structure for all shareholders
Positions Dell for investment grade ratings while maintaining VMware’s investment grade
✓ ratings post share distribution
3 © Copyright 2021 Dell Inc.Separation & Distribution Agreement Summary
Key elements aligned with value creation framework
▪ Maintains strategic alignment and benefits of current relationship
▪ Continues joint collaboration on solutions including VxRail and VMware Cloud on Dell EMC
Commercial ▪ Agreement to work together on new areas of joint innovation including edge, telco and 5G
Agreement ▪ Commitment to continue driving VMware revenue through Dell’s sales channel
Summary ▪ Preserves VMware access to Dell Financial Services
▪ Formalized governance process tied to achieving commercial agreement goals
▪ 5 year term with optional annual extensions post term
▪ VMware will pay an $11.5B-$12B special dividend to all its shareholders including Dell Technologies
Special ▪ Dell will receive approximately ~$9.3B-$9.7B due to its 80.6%1 stake in VMware
Dividend ▪ Dell intends to use net proceeds to repay non-DFS related debt
▪ Post dividend and share distribution, Dell will be well positioned for Investment Grade ratings
▪ VMware moves to a single class share structure
Governance ▪ Dell Technologies share structure remains the same
▪ Transaction expected to close in calendar Q4 2021
Timing ▪ Contingent upon favorable private letter ruling from IRS, opinion and IG ratings for VMware
1As of January 29, 2021
4 © Copyright 2021 Dell Inc.Dell Technologies Equity Ownership (Illustrative)
Equity ownership before and after VMware share distribution assuming transaction closed March 29th
• Each Class A, B and C share has the same economic interest in broader
Dell Technologies including its current pro-rata interest in VMware
• Current Dell Class C price is $941
• No change to the number of Dell shares • Shareholders will receive approximately .44
outstanding shares of VMware for each Dell share
• Shareholders will have economic interest in
2
Dell excluding VMware + $9.3B from VMware • Current estimated value1: VMware price
special dividend ($154) less impact of special dividend per
share ($27) x .44 shares = $56
• Implied value post share distribution is
3
approximately $38 per share or ~4.7x TTM
adjusted EBITDA
1As of close on April 9, 2021. Dell share price was $93.88. VMware share price was $154.00 less impact of special dividend ($27.43) x .44 = $56
2Assumes $11.5B special dividend and Dell maintains 80.6% ownership of VMware at close for illustrative purposes.
3Estimated by taking current Dell Technologies share price less estimated VMware distribution value. ($94 - $56) and excludes any share dilution impact.
5 © Copyright 2021 Dell Inc.Dell debt and leverage ratios will improve post-spin
Illustration below adjusts Q421 numbers for special dividend and assumes it was used at Dell to pay down debt
Q421 with VMware Q421 proforma without VMware
2 3
~2.0x Net Debt/Adjusted EBITDA ~1.6x Net Debt/Adjusted EBITDA
▪ Non-DFS related debt $33.4B ▪ Non-DFS related debt $24.1B
(core Debt: $29.2B, margin $4.0B, other $0.2B) (core $23.9B, margin $0, other $0.2B)
▪ DFS-related Debt: $10.3B ▪ DFS-related Debt: $10.3B
▪ VMware Debt: $4.8B ▪ C&I $10.8B (excludes VMware)
▪ Cash & Investments (C&I) $15.8B ▪ Focused on IG ratings and expect the
▪ Credit Rating: BB+ transaction to be credit positive
1Assumes $11.5B special dividend for illustrative purposes
2calculation:numerator is core debt + margin/other loan +VMware debt - C&I; denominator is core EBITDA calculated using Dell Technologies consolidated Adjusted EBITDA - 19% of VMware EBITDA - DFS estimated EBITDA (4% return on assets derived from a peer benchmark)
3calculation:numerator is core debt + margin/other loan - C&I ex public subs – special dividend; denominator is consolidated trailing twelve month EBITDA - VMware TTM EBITDA ($8.3B) - DFS estimated EBITDA
6 © Copyright 2021 Dell Inc.Long-Term Financial Operating Model
Driving GDP to GDP plus revenue growth, strong cash flow and EPS growth over time
Growing
P&L Leverage
Long-Term TAM Growing operating income faster
Well-positioned across multiple than revenue
growth vectors Compound EPS
Growth
Growing operating income
faster than revenue over
the long-term and EPS
faster than operating
Proven Share Gain income including reduction
in interest expense Strong Cash Flow
Capability Enables EPS accretion through
Strong history of share gains in continued debt paydown,
target markets including x86 investments in growth and future
servers, high-end storage, HCI capital returns
and PCs
7 © Copyright 2021 Dell Inc.Core Vision & Strategy
Remains unchanged post-spin
PURPOSE To create technologies that drive human progress.
VISION To become the most essential technology company for the data era.
Use our unique strengths to win in the consolidation of the markets in which we compete
STRATEGY and create differentiated Dell Technologies solutions.
Customers Shareholders Team Members Partners Community
8 © Copyright 2021 Dell Inc.Supported by World-class Organizations
Global scale and operations to capture growth opportunities ahead of us
Sales Services Supply Chain Financial Services
Largest direct sales force 34K+ full-time services & More than $70B in DFS Assets of $11.8B2
in industry, ~30K strong support employees1 procurement spend per
year Originations have doubled
Fast-growing channel Modern managed services in 4 years3
program, ~220K partners capabilities leveraging Dell’s Operate in 180 countries
scale and technology w/ 25+ manufacturing Flexible consumption
Expanding cross-sell locations models
opportunities across Dell Enterprise-class support for
Technologies’ portfolio mission critical data centers 760+ parts distribution Financing & leasing
and systems centers globally arrangements
1Services in 180 countries, >200M assets in 54 languages
2DFS Assets consists of DFS financing receivables plus net operating leases as of January 29, 2021
3Originations represent the amounts of financing provided by DFS to customers for equipment and related software and services, including third-party originations
9 © Copyright 2021 Dell Inc.Long-Term Value Creation Framework
CURRENT NEW CORPORATE CAPITAL
SYNERGIES
OPERATIONS OPPORTUNITIES STRUCTURE STRUCTURE
Consolidate core end Tightly integrated R&D investments in Simplification of Reduce core
markets through software and emerging areas of operations leverage
ongoing share gains solutions technology and interest expense
Improve margins with Aligned shareholder
Cross-sell and go-to- Asset divestitures
scale optimization M&A interests
market opportunities
and product mix shift
Partnerships, Future capital returns
including public cloud post Investment
providers and Grade ratings
telecommunications
10 © Copyright 2021 Dell Inc.1
Dell Technologies ex VMware Financial Metrics
Includes estimate of VMware reseller revenue (in green)
$86.6B
$83.9B $84.9B
+2% Y/Y
+15% Y/Y 1% Y/Y
NON-GAAP $73.3B
REVENUE
Results driven by
$86.6B Record FY21 revenue,
operating income and
record CSG and
stable ISG
+6% FY18-21 CAGR cash flow from performance and
FY18 FY19 FY20 FY21 operations operating expense
NON-GAAP $7.1B $7.2B management
$5.9B +19% Y/Y +2% Y/Y
OPERATING +16% Y/Y
INCOME $5.1B
$7.2B Record strong cash
flow from operations
Focused on product
+12% FY18-21 CAGR FY18 FY19 FY20 FY21 innovation and
due to robust
accelerating share
profitability and
CASH FLOW FROM gains in storage,
$7.0B diligent working capital
OPERATIONS $5.4B servers and PCs
$3.7B
management
$3.3B
$7.0B
+23% FY18-21 CAGR
FY18 FY19 FY20 FY21
(1) Includes estimate of VMware reseller revenue going through Dell as disclosed in VMware’s 10-Ks.
Regulation S-X proforma information will be available later in the year; numbers are subject to change with no obligation to reconcile these estimates.
See appendix for calculations of Dell Technologies ex VMware financial metrics
11 © Copyright 2021 Dell Inc.Leading in the Core
We are a leader in key markets where we compete — driving consolidation & outperforming the industry
$269B
CY 2021 TAM $48B $29B (357M units) $61B $19B $10B
CY20 Share (unless otherwise notated)
71% 71% 82% 82% 83% 81% 67%
Others 72% 71% 68%
83% 82% 88%
Dell Technologies
32%
28%
29% 29%29% 18% 17% 18% 18% 17% 12%19% 33%
Mainstream External PC Cloud IT Storage Hyperconverged
Server1 Storage HW2 Units3 Infrastructure4 SW5,6 Infrastructure7
DT Rank
Q4 2020 #1 #1 #1 (Client Rev) #1 #1 #1
Market Growth %
(2020 – 2024 CAGR) 4.9% 3.4% 2.6% 0.9% 4.1% 12.3%
1Rank & share based on IDC WW Quarterly Server Tracker, 2020Q4 Historical Release; Market growth & TAM based on 2020Q4 Forecast Release. Note, Mainstream includes Standard Rack Optimized (non-custom), Towers (plus Large Systems) and Blades. 2 Rank & share based on IDC
WW Quarterly Enterprise Storage Systems Tracker, 2020Q4 Historical Release; Market growth & TAM based on 2020Q4 Forecast Release. 3 Share based on 2020Q4 IDC PCD Tracker, Rank based on Client business revenue (CSG revenue) compared with other PC OEMs from financial
public filings, excluding tablet revenue; Market growth & TAM based on IDC PCD Tracker, 2020Q4 Forecast Release. 4 Rank & share based on IDC WW Quarterly Cloud IT Infrastructure Tracker, 2020Q3; Market growth & TAM based on 2020Q3 Traditional Forecast Release. Dell is the
highest share of named vendors. 5 Rank & share based on 2020Q4 IDC WW Storage SW & Cloud Services QView, 2020Q4 for Dell Technologies (12.0% share). 6 Market growth & TAM based on IDC Semiannual Software Tracker, 2020H1 Forecast Release. 7 Rank & share based on IDC
WW Quarterly Converged Systems Tracker, 2020Q4 Historical Release; Market growth & TAM based on 2020Q4 Forecast Release.
12 © Copyright 2021 Dell Inc.Client Solutions Group
Consistent record of growth, share gains and strong profitability
$43.2B $45.8B $48.4B
+6% Y/Y +5% Y/Y
Long-term TAM will
$39.2B +10% Y/Y
REVENUE CSG Revenue has benefit from the larger
increased every year install base post-
$48.4B for the last five years
with record revenue
pandemic and the
structural shift to
+7% FY18-21 CAGR and operating profit in notebooks (shorter
FY18 FY19 FY20 FY21
FY21. lifecycles, higher
Commercial $27.5B $30.9B, +12% Y/Y $34.3B, +11% Y/Y $35.4B, +3% Y/Y
Consumer $11.7B $12.3B, +5% Y/Y $11.6B, -6% Y/Y $13.0B, +12% Y/Y ASPs and S&P attach)
$3.4B
$3.1B
OPERATING +60% Y/Y
+7% Y/Y Only big 3 vendor with Expect CSG strength
$2.0B positive Commercial to continue through at
INCOME $2.0B -4% Y/Y
PC share gain in least 1H22 with
$3.4B calendar 20201; Dell
has gained +560 pts of
tougher comps in the
second half, in line
+19% FY18-21 CAGR share over last 5 with IDC PC market
FY18 FY19 FY20 FY21
6.9% of CSG revenue 5.2% 4.5% 6.8% 6.9% years1 expectations2
+170 bps from FY18 -70 bps Y/Y +230 bps Y/Y +10 bps Y/Y
(1) Per IDC WW Personal Computing Device Tracker CY20Q4.
(2) IDC 20Q4 Forecast as of February 24, 2021
Note that results are calculated on underlying data and may not visually foot.
13 © Copyright 2021 Dell Inc.The PC market is expected to be bigger going forward
The “do anything from anywhere” economy drives significant business opportunity
Key Highlights PC Total Addressable Market – $270B TAM in 2021
375
375M 364 20%
358 357
• The new norm is expected to increase overall TAM 349
340
334 334
• Shift to mobility leads to a shorter refresh cycle with higher ASPs 315 315
308 15%
300 302
300
• Change will require more peripherals, IT support, and services 271 276
268
260 260 260
10%
232
PC Installed Base Over Time
225 209
5%
2,000
2,000M
1,600 0%
150
1,200
(5)%
800
Increasing PC penetration 75
400 creates a larger installed
base for refresh (10)%
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0 (15)%
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
Units (millions) YoY Growth
Source: IDC 20Q4 IDC WW PC Installed Base Forecast Tracker as of March 17, 2021, IDC 20Q4 Forecast as of February 24, 2021
14 © Copyright 2021 Dell Inc.Infrastructure Solutions Group
Executing through challenging environments and delivering strong profitability
$36.7B
$34.0B $32.6B
+19% Y/Y
$30.9B
-7% Y/Y
-4% Y/Y Gained +530 bps of Remain #1 in the
REVENUE mainstream server external storage
revenue share over market2 in all major
$32.6B last 5 yrs1 while Dell storage categories;
+2% FY18-21 CAGR servers & networking portfolio now well-
FY18 FY19 FY20 FY21 revenue returned to positioned to resume
Servers & Networking $15.5B $20.0B, +28% Y/Y $17.1B, -14% Y/Y $16.5B, -4% Y/Y Y/Y growth in Q421 share gains
Storage $15.4B $16.8B, +9% Y/Y $16.8B, 0% Y/Y $16.1B, -4% Y/Y
$4.2B $4.0B $3.8B
+35% Y/Y -4% Y/Y
OPERATING -6% Y/Y
Expect to see the
$3.1B
INCOME Expanding customer global economy and
choice with new APEX on-prem demand to
$3.8B offerings (as-a-service improve as customers
+7% FY18-21 CAGR capabilities) return to office which
FY18 FY19 FY20 FY21 should benefit ISG
11.6% of ISG revenue 9.9% 11.3% 11.8% 11.6%
+170 bps from FY18 +140 bps Y/Y +50 bps Y/Y -20 bps Y/Y
(1) Based on IDC mainstream server revenue historical data from 2015 to 2020.
(2) See slide 12.
Note that results are calculated on underlying data and may not visually foot.
15 © Copyright 2021 Dell Inc.Leadership in the hybrid cloud world
#1 in key areas
Dell Is the Leader in Hybrid Cloud Solutions
92% of Enterprises have a multi-cloud strategy and
82% have a hybrid cloud strategy4
#1 #1
Public & Storage
Private Cloud IT Platforms for Private Dell is well-positioned in hybrid cloud with leading product
Infrastructure¹ Cloud¹ portfolio (e.g., next-gen storage portfolio)
#1 #1 Continued deep partnership and commercial relationship
with VMware post-transaction on hyperconverged and future
product development / GTM
Cloud Management Hyperconverged
Software² Systems³
Core server and storage business is well-positioned for growth in a world where hybrid cloud dominates
Source: IDC’s Cloud Pulse Q120 (March 2020)
¹ IDC WW Quarterly Cloud IT Infrastructure Tracker CY20Q3. Dell is the highest share of named vendors. ² IDC WW Cloud System & Service Management Software Market Shares (2019).
³ IDC WW Quarterly Converged Systems Tracker CY20Q3. 4 Flexera 2021 State of the Cloud Report.
16 © Copyright 2021 Dell Inc.APEX Vision
Simplify digital transformation by increasing IT agility and control
SIMPLICITY AGILITY CONTROL
Take advantage of technology that’s Align technology with business needs, Minimize risk and maximize resources,
operated by you, but managed for you rapidly scale with greater flexibility run your business on your terms
EFFORTLESS VELOCITY SECURITY
Focus on high-value work, Get up and running faster, Take charge of cyber resiliency,
let us take care of the lifecycle save time and labor costs lead your incident response
SELF-SERVICE ELASTICITY SOVEREIGNTY
Experience your as-a-Service Dynamically scale up or down, Govern where data is
journey all in one console pay only for what you use located to ensure compliance
OUTCOME-BASED TRANSPARENCY PLACEMENT
Easily configure technology, Contain costs and free up Isolate critical applications,
simply select your desired outcomes capital to seize opportunities assure optimal performance
17 © Copyright 2021 Dell Inc.We have the advantage to win at the Edge
Dell starts with a number of key capabilities and is focused on building new ones
Edge is the Next Battleground How We Win the Edge
5G will fuel exponential growth at the edge for next-
generation technologies and intelligent / automated
experiences
Generation of new data will grow from 50 zettabytes in
2020 to 175 zettabytes in 2025
Expected 800% increase in applications at the edge by
2024
Optimize For Partner
Edge Solutions
$700B in cumulative capital expenditures will be spent
Simple to manage Edge Ecosystem
within the next decade on edge IT infrastructure and data Clear requirements Across the entire
and deploy
centers and roadmaps environment
Dell Technologies has the footprint, expertise, world-
class services, and industry-leading supply chain to win
at the edge
18 © Copyright 2021 Dell Inc.ESG Highlights1
From our latest Social Impact reporting2 and external recognition
Advancing sustainability. Cultivating inclusion. Upholding ethics.
Ocean-bound 2030 Goal: 75% of
45% of electricity
plastic program Reduced server electricity across
from wind, solar or
supported use portfolio energy by all Dell
hydroelectric
across 1.7M 82% Technologies from
sources
packaging units renewable sources
Environmental
Dell contributed to 2030 Goal: 50%
Committed over Delivered 5M
over 15,000 empowered by social
$4M in in-kind cumulative
nonprofits and initiatives will be
technology for volunteer hours to
~59% of employees girls, women or
frontline Covid-19 hit 2020 Legacy of
participate in underrepresented
workers3 Good target
Social giving/volunteerism groups
2030 Goal: 100% of
100% of Enhanced Global Surveyed
direct partners Dell
employees Privacy Program 42,000 employees
does business with
completed assigned helps customers to identify view of
will demonstrate
ethics and understand and culture to positively
commitment to
compliance training control their data influence behavior
Governance our values
1 Metrics
19 are for Dell Technologies; excluding Secureworks; and excluding VMware (including Pivotal), which publishes its own annual Global Impact Progress Report.
2 FY20 Social Impact Report; 3 Dell Technologies COVID-19 Response Factsheet.
19 © Copyright 2021 Dell Inc.Key Takeaways
VMware Spinoff Agreement
The Dell/VMware relationship is strong and both companies will continue to work closely
✓ together in a first and best framework
Dell and VMware shareholders will benefit from the transaction announcement today and in
✓
the future
Dell is well-positioned to grow and has a history of generating strong cash flow and value
✓
creation with a compelling valuation
20 © Copyright 2021 Dell Inc.FY22 Key Upcoming Investor Events
Timing and events are tentative and subject to change
Conferences
• Bank of America & Bernstein (June)
• Citi & JP Morgan All-Stars (September)
• Wells Fargo & Credit Suisse (December)
Virtual Roadshows (throughout the year)
Key Topic Calls (throughout the year)
• CSG (yesterday)
• ISG
• ESG
• Other topics
Dell Technologies World (May)
Investor Day (Fall prior to transaction close)
21 © Copyright 2021 Dell Inc.Appendix A
Debt summary
© Copyright 2021 Dell Inc.Debt summary
$ in billions 1, 2 EMC Close 4Q20 1Q21 2Q21 3Q21 4Q21
Revolver 2.0 - - - - -
Term Loan A 9.4 4.2 4.1 4.0 4.0 3.1
Term Loan B 5.0 4.7 4.7 4.7 4.7 3.1
Investment Grade Notes 20.0 20.8 23.0 21.6 18.5 18.5
DFS Allocated Debt (1.0) (1.5) (0.9) (1.2) (0.9) (0.7)
Total Core Secured Debt 3 35.4 28.2 31.0 29.1 26.3 24.1
High Yield Notes 3.3 2.7 2.7 2.7 2.7 2.7
Asset Sale Bridge 2.2 - - - - -
Legacy Dell Unsecured Notes 2.5 1.4 1.4 1.4 1.4 1.4
Legacy EMC Unsecured Notes 5.5 1.6 1.6 1.0 1.0 1.0
Total Unsecured Core Debt 13.4 5.7 5.7 5.1 5.1 5.1
4 48.8 33.8 36.6 34.1 31.4 29.2
Total Core Debt
Margin Loan and Other 4.0 4.0 4.0 4.1 4.2 4.2
DFS Debt 3.5 7.8 8.3 8.8 9.2 9.7
DFS Allocated Debt 1.0 1.5 0.9 1.2 0.9 0.7
Total DFS Related Debt 4.5 9.3 9.1 10.0 10.1 10.3
5 57.3 47.1 49.8 48.2 45.6 43.7
Total Debt, Excluding Public Subsidiaries
Total Public Subsidiary Debt - 5.6 7.6 6.3 4.8 4.8
5 57.3 52.7 57.3 54.5 50.4 48.5
Total Debt, Including Public Subsidiaries
1 Amounts are based on underlying data and may not visually foot due to rounding.
2 Principal Face Value.
3 Core Secured Debt represents secured term loans, investment grade notes, and revolver. It excludes DFS allocated debt based on a 7:1 leverage ratio of DFS financing receivables and fixed assets supporting operating leases.
4 Core Debt represents the total amount of our debt, less: (a) unrestricted subsidiary debt, (b) DFS related debt, and (c) other debt.
5 VMware and its respective subsidiaries are considered unrestricted subsidiaries for purposes of the existing debt of Dell Technologi es.
23 © Copyright 2021 Dell Inc.Appendix B
Supplemental non-GAAP measures
© Copyright 2021 Dell Inc.Supplemental non-GAAP measures
Fiscal 2021 and Fiscal 2020 net revenue and operating income
1 Amounts are based on underlying data and may not visually foot due to rounding.
2 This
amount includes non-cash purchase accounting adjustments primarily related to the EMC merger transaction.
3 Consists of acquisition, integration, and divestiture-related costs, as well as costs incurred in the Class V transaction.
4 Consists of severance, facility action, and other costs. Fiscal 2021 includes derecognition of a previously accrued litigation loss. Fiscal 2020 includes asset impairment charges and a litigation loss accrual.
25 © Copyright 2021 Dell Inc.Supplemental non-GAAP measures
Fiscal 2019 and Fiscal 2018 net revenue and operating income
1 Amounts are based on underlying data and may not visually foot due to rounding.
2 This
amount includes non-cash purchase accounting adjustments related to the EMC merger transaction and the going-private transaction.
3 Consists of acquisition, integration, and divestiture-related costs. Fiscal 2019 includes costs incurred in the Class V transaction.
4 Consists of severance, facility action, and other costs. Fiscal 2019 includes goodwill impairment.
26 © Copyright 2021 Dell Inc.Supplemental non-GAAP measures
Free cash flow, excluding VMware, before impact of DFS related items
$ in billions1 FY19 FY20 FY21
Cash flow from operations 7.0 9.3 11.4
Adjustments:
Capital expenditures and capitalized software development costs, net (1.5) (2.6) (2.1)
Free cash flow 5.5 6.7 9.3
Adjustments:
DFS financing receivables 1.3 1.3 0.7
2
DFS operating leases - 0.8 0.5
Free cash flow before impact from DFS related items 6.8 8.9 10.5
VMware cash flow from operations 3.7 3.9 4.4
Adjustments:
VMware capital expenditures (0.3) (0.3) (0.3)
VMware free cash flow 3.4 3.6 4.1
Free cash flow, excluding VMware, before impact from DFS related items 3.4 5.3 6.5
1 Amounts are based on underlying data and may not visually foot due to rounding.
2 Amount represents change in net carrying value of equipment for DFS operating leases under the current lease accounting standard, which was adopted in 1Q20.
27 © Copyright 2021 Dell Inc.You can also read
